Cash Management Account

Key features of PCMA that will assist clients to manage your trades and settlements are as follows,

Pre-Payment
For easy settlement of purchases, you may make pre-payments into the trading account at anytime. The PCMA will be able to accept placement of funds through funds transfers via internet banking, Electronic payments for shares (EPS) or Telegraphic Transfers (TT).

Withdrawal of Funds
Account holders can request to withdraw excess cash from their trading account either by submitting the online withdrawal form or contact the authorized Trading/Financial Advisory Representatives to perform the withdrawal on his behalf. All instructions must be submitted before 10am of each business day. Account holders can choose to have the funds credited directly to their bank account or collect it in a form of a cheque.  For security reasons, crossed cheques will only be issued in the account holder’s name. No cash withdrawals are allowed.

The following are specific to equity trading only.
Settlement of Purchase Contracts
Purchase Contracts will be settled on the Contract Due Date plus 1 working day (D+1) through the deduction of the balance in the trading account. There will be no partial settlement. Clients just need to transfer more funds into the account if there is insufficient money in the trading account.

Settlement of Sale Contracts
Settlement of Sale Contracts will be performed on Contract Due Date + 1 day (D+1), and the sale proceeds will be credited to the PCMA upon delivery of the shares. The amount will be credited into the trading account which can be used for further purchases.

Settlement of Contra Gains/Losses
You can perform contra trading of shares through this trading account. If you perform a sell trade during contra period, contra will automatically be done on a first-in-first out principle.

Contra gains will be credited to the account on contra note date + 1 day. Contra losses will be debited from the account on contra note date + 1 day if you maintain sufficient funds.

Custody of Shares
For all SGX listed securities traded through PCMA, the Central Depository Pte Ltd (“the CDP”) will be the share depository. Shares purchased will be deposited in the account holder’s Global Securities Account (GSA) with the CDP, corporate actions will also be handled by them.

Foreign equities traded or transferred into this trading account will be held in custody with Phillip Securities Pte Ltd on terms as set out in the Conditions Governing Phillip Securities Trading Accounts (Terms and Conditions). Corporate actions will also be handled by Phillip Securities Pte Ltd.

Multi-currency Facility
As an added advantage, you also have the option of maintaining foreign currency balances in your account for ease of trading and efficient management of your foreign currency-denominated investments. Settlement for trades can either be in the traded currency or in SGD.

With Multi-Currency facility clients can:
1. Choose to maintain foreign currencies in the trading account.
2. Convert the money in the trading account into different currencies for settlement of their trades with the purpose of mitigating foreign currency risk.
3. Withdraw foreign currencies with no minimum holding amount required to be maintained in the account.

Sufficient funds must be maintained in the settlement currency to avoid incurring interests on debit balances. Please refer to our Infosheet on the applicable debit interest rates.

Note:
Auto-conversion of Debit Balance will take place in the event the ledger runs into a deficit, which may arise from certain transactions carried out on that day.

Auto adjustment of trading Limit facility
Trade up to the amount placed in the trading account. The trading limit will be the trading account assigned limit or the amount placed in the trading account, whichever is higher. All you need to do is to transfer money into the account and you are ready to trade!

This auto adjustment of trading limit facility also applies to clients who opt for Excess Fund Management facility.

Monthly Statements
There are 2 types of statements sent to you:

  1. Statement reflecting monthly transaction movements and balance in the trading account
  2. Statement of transaction for equity trading (if there are any trades done)

If there is no transaction done in the trading account, a quarterly statement will be issued instead.

You may also view your current and previous month’s transaction history and account details up to 12 months year-to-date through POEMS.

Enroll in eStatements today to enjoy greater convenience of viewing your statements on the go and save the environment! Click here to find out more.